Phat Loc Express, formerly known as Vinlinks, was founded in 2001 and is now the fifth-largest logistics firm in Vietnam. (Photo: Tri Thuc Tre)

Hanoi (VNA)
- The conglomerate VinGroup will sell its entire ownership in the logistics service firm Phat Loc Express and Trading JSC (Phat Loc Express), VinGroup said in a statement.

According to the statement, which was released in early December, VinGroup will sell nearly eight million shares or nearly 80 percent of the chartered capital in Phat Loc Express to withdraw its entire stake in the logistics service firm.

The buyer is believed to be logistics firm Sagawa Express Co Ltd, a member of Japan-based SG Holdings, according to a report on the Nikkei Asian Review.

Nikkei Asian Review reported that SG Holdings will purchase VinGroup’s eight million shares in Phat Loc Express for 9 million USD, equal to Phat Loc Express’ sales made in 2015.

VinGroup has yet to release further information about the deal.

Phat Loc Express, formerly known as Vinlinks, was founded in 2001 and is now the fifth-largest logistics firm in Vietnam. The company was acquired by VinGroup in July 2015 after the giant real estate and retail group bought nearly 80 percent of shares from Hop Nhat International Express JSC.

SG Holdings has operated in Vietnam via a local subsidiary since 2012, handled its deliveries in HCM City and Hanoi, and contracted local logistics firms for other areas. The deal between SG Holdings and VinGroup could be an important step for the Japanese logistics firm to expand its market share in the domestic market.

VinGroup is a giant group, operating in the real estate and retail sectors. The company has also expanded its business in online sales and logistics businesses.

In the past quarter, VinGroup recorded 10.65 trillion VND (473.3 million USD) in revenue and 175 billion VND in net profit. In the first nine months, the company’s revenue rose 80 percent year on year to 34.65 trillion VND, and its post-tax profit tripled from last year’s figure to 3.1 trillion VND.

In late November, VinGroup and Sagawa signed a delivery and logistics cooperation agreement to develop and enhance the delivery capability of VinGroup. The cooperative agreement will provide comprehensive logistics solutions for VinGroup to improve its logistics services and help the Vietnamese real estate group get access to modern management software, expected to optimise transportation solutions. — VNA